FUNDAMENTALS OF ENTREPRENUERSHIP (ENT300)

BUSINESS PLAN

MANGO COMPANY

PREPARED BY
FACULTY & PROGRAMME : FACULTY BUSINESS AND MANAGEMENT
DIPLOMA IN BUSINESS STUDIES (MBA111)
SEMESTER : PART 5
PROJECT TITLE : BUSINESS PLAN
GROUP MEMBERS : NAME, MATRICS NUMBER
1. NURULHUDA BINTI JAMAL (20192711852)
2. AMIRAH HUMAIRA BINTI ZAINUL AZHAN
(2019287224)
3. NOR AKMALIAH BINTI SELAMAT
(2019295602)
4. BALQIS BINTI SAIFUL BAHRI (2019437472)
5. SITI HAFIZATUL NUUR AIN BINTI GHAZALI
(2019491784)

PREPARED FOR
MADAM RAFIDAH ABD AZIS

SUBMISSION DATE
3 DISEMBER 2021

1
 TABLE OF CONTENT

NO
TITLE PAGES
.
1. EXECUTIVE SUMMARY 4
2. INTRODUCTION
2.1 Business Description 5
2.2 Purpose of Business Plan 6
2.3 Company Background 7
2.4 Owner/Partners Description/Background 8 – 12
2.5 Product Description 13
3. ADMINISTRATION PLAN
3.1 Introduction to The Organisation 14
3.2 Organization Structure 15
3.3 Administration Personnel 15
3.4 Schedule of Task and Responsibilities 16 – 18
3.5 Schedule of Remuneration 19
3.6 Office Equipment and Supplies 19 – 20
3.7 Administration Budget 21
4. MARKETING PLAN
4,1 Setting Marketing Objectives 22
4.2 Product Description 23 -24
4.3 Target Market 25
4.4 Market Trend and Market Size 26 -27
4.5 Competition – Strength and Weaknesses of Competitors 28
4.6 Forecasting Sales 29
4.7 Marketing Strategy 30 – 32
4.8 Marketing Personnel 33 -34
4.9 Marketing Budget 35
5. OPERATIONAL PLAN
5.1 Process Planning 36
5.2 Operation Layout 37
5.3 Production Planning 38
5.4 Material Planning 39 – 40
5.5 Machine and Equipment Planning 41

2
 5.6 Manpower Planning 42 – 45
5.7 Overhead Requirement 45
5.8 Location Plan 46 – 47
5.9 Business and Operations Hours 47
5.10 License, Permit and Regulations 48
5.11 Operation Budget 48
6. Financial planning
6.1 Administrative Budget 49
6.2 Marketing Budget 50
6.3 Operation Budget 51
6.4 Depreciation Schedules 52 – 53
6.5 Loan and Hire-Purchase Ammortisation Schedules 54
6.6 Pro Forma Cash Flow Statement 55
6.7 Pro Forma Production Cost Statement 56
6.8 Pro Forma Income Statement 57
6.9 Pro Forma Balance Sheet 58
6.10 Graf 59
7. BUSINESS MODEL CANVA
60
REFERENCES

3
1. EXECUTIVE SUMMARY

MANGO COMPANY is a manufacture company that produce a table that can be fold
and can be used for study table. Not just than that, the table also is multifunction. The Covid-
19 pandemic has given so many impact including on education. All schools and higher
education need to be closed down. Thus, the Malaysian Ministry Education decided of home
teaching and learning education which makes both educators and students will feel new
environment for their class. Furthermore, they also need a table for their study purpose. In
order to give comfortable and suitable study accessory, we have come up with the idea of
producing multifunction study table, GALLEN’s folding table as our company product. The
table is not just a normal table. It has a folding shelf that has a strong attachment to the wall.
Subsequently the table are adjustable where they can leave some space and it is very
convenient for a house who has a small space.

We choose Klang, Selangor as our company base. Our company’s office is very near
to the factory. The location is very strategic and most of the selected stores who sells our
GALLEN’s Folding Table is in a residential area and very accessible for the customers, it
could help for our company’s growth and increase our brand visibility.

During this pandemic, we informed that all schools and universities need to be closed
down and start to make an online-teaching method. By having a study table, it could give the
students a very comfortable space to do their work. We choose to innovate the study table by
make it foldable, can be pulled long to three table, having a cup holder, or even have a hole to
put phone while charging. We sure that our product could give good impact for students by
using it during online class.

4
2. INTRODUCTION

2.1 BUSINESS DESCRIPTION

MANGO COMPANY, as our company’s name is focus on producing a new study table that
has been innovate. Our foldable table is multifunction which also not just a normal study
table but also can be use in the kitchen or even can make for iron board for cloth. Since our
company is a manufacturer, this folding table can be found in the selected supermarkets but
also can be found at our main branch in Klang.

The demand for study table is high since most of the students are learning online from home
and they need a study table for their online class. Not just the students, the educators also
need the table for teaching purpose. It is very recommended for using our product during
online class.

5
2.2 PURPOSE OF BUSINESS PLAN
The main purpose of this business plan is to explain our Mango Company which
offers multi -functional desk product manufacturing services that can meet the desires of
consumers. Not only that, this business plan is also provided as a reference for banks, future
investors, and other institutions to consider the capabilities of the proposed project and
subsequently provide loans or initial capital to start a business. This business plan is also
provided by Mango Company with the aim of obtaining working capital loan from Allience
Bank which is worth RM160,095. In addition, we are confident that with the additional funds
from the bank it will help the sales and development of our products nationwide and abroad
in the future. We believe that our multifunction desk products will provide convenience as
well as meet the desires of the current generation.

Next, the purpose of this business plan provided is to serve as a guideline to the
manager of the company so that they can manage the business more efficiently and
effectively. It is also to help entrepreneurs to understand more about the vision, mission and
objectives of the business. Furthermore, with this business plan, it can convince more
suppliers to provide raw material supplies to the company related to our business capabilities.
Therefore, both parties benefit from the long-term agreement that will be agreed. Moreover,
with the existence of this business plan, employees can refer to it to understand more about
the goals and objectives of the business. It will also serve as a guideline to the employee
concerned their duties and responsibilities. With that, employees can do their jobs more
productively in order to achieve business objectives and goals.

Lastly, this business plan has listed various suitable marketing strategies used to
attract customers towards the products provided. Therefore, it can make it easier for
employees to refer back to information related to the appropriate strategy used to attract the
attention of target consumers. Marketing guidelines provided in the business plan can also
help staff build good relationships between customers, suppliers as well as investors.

In conclusion, the purpose of preparing this Mango company's business plan is to

describe, identify and analyze business opportunities, looking at the company’s financial
capabilities as well as identifying business competitors before entering the market. This is to
prepare businesses to face competitors in the market by strengthening finances, improving
skills in managing business operations and improving employee productivity in order to
achieve the company's vision and objectives and get the opportunity to enter a larger market.

6
2.3 COMPANY BACKGROUND

Name of Company Mango Company

Business Address 101, Jalan Mahogani 5, bandar Botanik, 41200 Klang,
Selangor.
Correspondence Address 101, Jalan Mahogani 5, bandar Botanik, 41200 Klang,
Selangor.
Website www.mangoenterprise.com.my
Email mangocompany@gmail.com
Form of Business Partnership Company
Main Activity GALLEN’s Folding Table
Date of Commencement 1 November 2021
Date Registeration 29 August 2021
Name of bank Allience Bank
Bank Account Number 621440017001098

2.4 PARTNERS BACKGROUND

7
NAME Nor Akmaliah Binti Selamat
IDENTITY CARD NUMBER 010127-04-0026
DATE OF BIRTH 27/01/2001
AGE 20 Years Old
MARITAL STATUS Single
PERMANENT ADDRESS SP 449, Jalan Dimensi 5, Taman Dimensi ,
78000, Alor Gajah, Melaka.
EMAIL ADDRESS mayaselamat1234@gmail.com
TELEPHONE NUMBER 013-5088027
ACADEMIC QUALIFICATION  Diploma in Business Study
COURSE ATTENDED Fundamentals of Entrepreneurship
(ENT300)
SKILLS  Fluent in Bahasa Malaysia and
English, both spoken and written.
Have basic in Mandarin.
 Advanced in Microsoft Office Word,
Excel, PowerPoint and Adobe
Photoshop.
EXPERIENCE Assistant Manager at McDonald’s Merlimau

8
NAME Balqis Binti Saiful Bahri
IDENTITY CARD 010206-08-1192
NUMBER
DATE OF BIRTH 06/02/2001
AGE 20 Years Old
MARITAL STATUS Single
PERMANENT ADDRESS Parit 17B, Sungai Lampam, 36000 Teluk Intan, Perak
EMAIL ADDRESS balqissaifulbahri@gmail.com
TELEPHONE NUMBER 011-15337106
ACADEMIC  Diploma in Business Study
QUALIFICATION
COURSE ATTENDED Fundamentals of Entrepreneurship (ENT300)
SKILLS  Advance in Microsoft Office (Word, Excel,
PowerPoint)
 Able to speak and write in Bahasa Malaysia, English
and have basic in Mandarin.
EXPERIENCE  Promoter at Gene Martino

9
NAME Siti Hafizatul Nuur Ain binti Ghazali
IDENTITY CARD 001031-10-0368
NUMBER
DATE OF BIRTH 21/10/2000
AGE 21 Years Old
MARITAL STATUS Single
PERMANENT No.54, Jalan Nyiru Tiga 19/5C, Seksyen 19, 40300 Shah Alam,
ADDRESS Selangor
EMAIL ADDRESS hafiain18@gmail.com
TELEPHONE NUMBER 017-6203619
ACADEMIC  Diploma in Business Study
QUALIFICATION
COURSE ATTENDED Fundamentals of Entrepreneurship (ENT300)
SKILLS  Exceptional communication and networking skills
 Able to speak in Bahasa Malaysia, English and have
basic in Mandarin.
EXPERIENCE  Manager in Aizi pets Shop

10
NAME Amirah Humaira Binti Zainul Azhan
IDENTITY CARD 010514-10-2100
NUMBER
DATE OF BIRTH 14/05/2001
AGE 20 Years Old
MARITAL STATUS Single
PERMANENT ADDRESS 24, Jalan Kristal 7/47, Seksyen 7, Shah Alam, Selangor.
EMAIL ADDRESS amirahumaira@gmail.com
TELEPHONE NUMBER 011-94643990
ACADEMIC  Diploma in Business Study
QUALIFICATION  Bachelor of Business Administration (Hons)
Marketing
COURSE ATTENDED Fundamentals of Entrepreneurship (ENT300)
SKILLS  Able to speak Malay, English and Mandarin
 Hands-on with MS Words, Excel and PowerPoint
 Willingness to perform under pressure
EXPERIENCE  Promoter at Qaira Hijab boutique

11
NAME NurulHuda Binti Jamal
IDENTITY CARD NUMBER 010401-08-0558
DATE OF BIRTH 01/04/2000
AGE 20 Years Old
MARITAL STATUS Single
PERMANENT ADDRESS No.10, Medan Klebang Restu, Perak
EMAIL ADDRESS huda44.jamal@gmail.com
TELEPHONE NUMBER 011-60922944
ACADEMIC QUALIFICATION  Diploma in Business Study
COURSE ATTENDED Fundamentals of Entrepreneurship
(ENT300)
SKILLS  Advance in Microsoft Office (Word,
Excel, PowerPoint)
 Able to speak and write in Bahasa
Malaysia, English and have basic in
Mandarin
EXPERIENCE  Promoter at Tiny Button store

12
2.5 PRODUCT DESCRIPTION

Mango company is a manufacture company that specialize in producing a foldable study

table that we name it as Gallen. Gallen’s folding table is made from high quality raw material
which is a cengal wood tree that durable and not easy to break. Our product come with many
colours that customer can choose such as black, white, sky blue, rose pink, honey pine and
more. Furthermore, the table that we produce are multifunction too. It can be extended by
pulling each side of the table. Our table also include phone charger wire where the consumer
can charge their phone from the wire available. Our table also have Bluetooth speaker so
consumer who like to do work while listening to music can connect their device with the
table. Not just that, it also has cup holder and place to put tablet. It’s not only for student use
but it can use for kitchen table or as a shelf to put some stuff or customer can use as an iron
board. The superiority of this product is it easy to attach with instruction that our company
will give, save space and it easy to carry anywhere because our product is coming with stand
like normal table too. Gallen’s folding table easy to put it out if customer want to bring it and
use as a normal table. Our product make customer can save money, save energy and save
space to use.

13
3. ADMINISTRATION PLAN
3.1 INTRODUCTION TO THE ORGANIZATION

3.1.1 VISION
Our vision is to be the best-selling furniture manufacturer in Malaysia and be able to stand as
a leading international furniture manufacturer, as well as offering high quality and innovative
products.

3.1.2 MISSION

1. To produce the highest quality product that can reach customers' requirements. 
2. To have a good relationship with the customer and become the most preferred
3. supplier among the customer.
4. To provide a diverse selection of well-designed, functional home furnishings at
affordable pricing.
5. To grow this company until it is successfully established abroad.

3.1.3 OBJECTIVE

1. To promote our product to the consumer as a way to gain recognition.

2. To establish a culture that respects and supports employee participation, motivate self-
improvement, and promote team cooperation.
3. To examine staff's convincing skills and communication abilities in order to ensure
that excellent customer service is provided.
4. To manage the financial budget and boost profitability so that it would be possible for
the company to grow.

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3.2 ORGANIZATIONAL STRUCTURE

GENERAL
MANAGER
Amirah Humaira

MARKETING
ADMINISTRATION FINANCE OPERATIONAL
MANAGER
MANAGER MANAGER MANAGER
Siti Hafizatul
Nor Akmaliah NurulHuda Balqis
Nuur Ain

3.3 LIST OF ADMINISTRATION PERSONNEL

POSITION NUMBER OF PERSONNEL
GENERAL MANAGER 1

ADMINISTRATION MANAGER 1

MARKETING MANAGER 1

OPERATION MANAGER 1

FINANCIAL MANAGER 1

TOTAL 5

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3.4 SCHEDULE OF TASK AND RESPONSIBILITIES OF ADMINISTRATION
PERSONNEL

POSITION TASK AND RESPONSIBILITIES

 Overseeing daily business operations.

 Developing and implementing growth strategies to
improve overall quality and productivity.
 Training low-level managers and staff.
 Creating and managing budgets.
 Improving revenue.
 Hiring employees.
 Evaluating performance and productivity.
 Analyzing accounting and financial data.
 Researching and identifying growth opportunities.
 Generating reports and giving presentations.
GENERAL
MANAGER  Respond to employee concerns in timely manner.
 Ensure that employees follow company policies and
procedures.
 Manage orientations and exit interviews for employees.
 Schedule regular team meetings to discuss about business
updates, issues and recommendations.
 Allocate responsibilities and office space.
 Provide coaching and guidance to ensure maximum
efficiency.
 Plan, coordinate and manage all administrative procedures
and systems.
 Assess staff performance.
 Keep abreast with all organizational changes and business
developments.
 Organize and supervise other office activities.
 Identify process bottlenecks.

16
  Ensuring the office is stocked with necessary supplies and
that all equipment is working and properly maintained.
ADMINISTRATIO  Ensure the smooth and adequate flow of information
N MANAGER
within the company.
 Supervising the day-to-day operations of the
administrative department and staff members.
 Hiring, training, and evaluating employees and taking
corrective action with necessary.
 Overseeing special projects and tracking progress towards
company goals.
 Evaluating and optimizing marketing and pricing

MARKETING strategies.
MANAGER  Generating new business leads.
 Developing and managing the marketing department’s
budget.
 Managing the marketing department’s staff.
 Promoting our brand at trade shows and major industry-
related events.
 Evaluating and optimizing marketing and pricing
strategies.
 Keeping informed of marketing strategies and trends.
 Coordinating marketing strategies with the sales, financial,
public relations, and production departments.
 Study needs and demands of the market.
 Selects the specific channel and supplies the finished
products from producers to consumers.
 Arrange for after-sale-services and remove the problems
of consumers.
 Study the changes and evaluate the product periodically so
that necessary modifications and alterations may be made
in the product.
 Provide inspired leadership for the organization.

17
  Make important policy, planning and strategy decision.

OPERATION  Assist HR with recruiting when necessary.

MANAGER  Supports worker communication with the management
team
 Build alliances and partnership with other organizations.
 Ensure all legal and regulatory documents are filed and
monitor compliance with laws and regulations.
 Help promote a company culture that encourages top
performance and high morale.
 Work with senior stakeholder.
 Identify and address problems and opportunities for the
company.
 Oversee budgeting, reporting, planning, and auditing.
 Work with the board of directors to determine values and
missions, and plan for short and long-term goals.
 Collecting, interpreting, and reviewing financial
information.
 Predicting future financial trends.
 Producing financial reports related to budgets, account
payables, account receivables, expenses.
 Reporting to management and stakeholders, and providing
FINANCE
MANAGER advice how the company and future business decisions
might be impacted.
 Aid management in financial decisions.
 Reviewing, monitoring, and managing budgets.
 Developing strategies that work to minimize financial risk.
 Analyze market trends to discover business opportunities
and maximize profits.
 Developing long-term business plans based on these
reports.

18
3.5 SCHEDULE OF REMUNERATION

POSITION NO. MONTHLY EPF 12% SOCSO TOTAL

SALARY (RM) 2.5% (RM)
GENERAL 1 2,300 276.00 58.00 2634.00
MANAGER
ADMINISTRATIO 1 2,100 252.00 53.00 2405.00
N MANAGER
FINANCIAL 1 2,100 252.00 53.00 2405.00
MANAGER
TOTAL 7444.00

3.6 LIST OF OFFICE EQUIPMENT & SUPPLIES

PRICE PER UNIT TOTAL COST

ITEM
QUANTITY (RM) (RM)

File cabinet 3 59.00 177

Office table 5 201.00 1005.00

Office chair 5 68.80 344.00

Phone 1 61.80 61.80

4 in 1 printer 1 320.00 320.00

(printer, fax, scan,
photostat)

Air conditioner 2 779.00 1558.00

Fire extinguisher 2 55.60 111.20

Clock 1 16.00 16.00

Computer 3 1299.00 3897.00

Total 23 2860.20 7490.00

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3.7 LIST OF OFFICE STATIONERIES

ITEM QUANTITY PRICE PER UNIT TOTAL COST

(RM) (RM)

Files 10 5.25 52.50

Tapes 4 1.70 6.80

Scissors 2 1.99 3.98

Pen 10 1.35 13.50

Markers 5 0.89 4.45

Erasers 2 1.29 2.58

Liquid 5 1.50 7.50

paper/correction pen
Notes book 5 17.89 89.45

Calculator 5 16.00 80.00

A4 paper 5 9.99 49.95

Ruler 5 0.75 3.75

Stapler 3 10.00 30.00

Puncher 2 7.90 15.80

Printer cartridges 2 59.99 119.98

Stam pad 5 5.90 29.50

Whiteboards 1 24.06 24.06

Calendar 1 2.20 2.20

TOTAL 72 168.92 536.00

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3.8 ADMINISTRATION BUDGET

PARTICULARS FIXED MONTHLY OTHER TOTAL

ASSETS EXPENSES EXPENSES (RM)
EXPENSES (RM) (RM)
(RM)
Fixed Assets

Office furniture & 7490.00 7490.00

fitting

Working Capital

Remuneration 7444.00 7444.00

Rent, Utilities 2200 2200

Other
Expenditure

Office supplies 536.00 536.00

Pre-operations

Deposit (rent, 3,000 3,000

utilities, etc)
Business
Registration & 1,000 1,000
Licenses
TOTAL 21,670

4. MARKETING PLAN
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4.1 SETTING MARKETING OBJECTIVES

MANGO COMPANY marketing objectives:

1. To be the best-selling manufacturer for having the high quality of multifunctional

tables in the industry.
2. Keep launch a new product to attract new customers and increase the customer loyalty
3. Grow the percentage of the market share by the end of the fiscal year by 10%
4. Optimize the funnel by increase the conversion rates by 5% in a year

4.2 PRODUCT DESCRIPTION

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 MANGO COMPANY

Brand name : GALLEN’s Folding Table

Weight : 3 KG

Thickness : 2 CM

Length : 70 CM (can be pull up to 170CM)

Width : 40 CM

Packaging : 75cm x 43cm x 5cm

Price : RM70 to RM200

Durability : Weight up to 30 kilograms

Product Variety: Comes with 6 colours

Brown, Wood, Beige, White, Black, Grey Wood

23
Our company produce a multifunction folding table that provide more than one benefits to the
consumer such as it can be extended by pulling from each side of the edge, has a GALLEN’S
Folding Table is made from the high quality of woods that came from the cengal wood that
makes the table durable in terms of decay resistance which contributes to its long-lasting
quality. The material also will make the table look polishable, dense and tight-grained. Our
design is very convenient for the small space as the table itself is adjustable and can be folded
to save spaces anywhere it is attached to. The size of the product is very suitable and
recommended to fit in an average size of room. To use as a study table, it is suitable for
students and adults to do their work. GALLEN’s Folding Table also can be used in the
kitchen or dining room to serve foods during any celebration or events such as birthday party,
Hari Raya, Christmas party and open house.

We are very concerned about the condition of the table. To prevent our product from damage,
the packaging of the table is sealed in a high quality box. The packaging itself also makes the
product easy to store and transport to other places. Step-by-step instructions for our product
are provided to be installed by the consumers itself.

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4.3 IDENTIFYING TARGET MARKET

Company: Mango Company

Market Segmentation Strategies Niche Marketing

- Targeting a large share of one or a
few segments or niches

Bases for Market Segmentation

Gender: Male and Female

Demographic Age: 19 - 40
Income: M40 and T20
Education level: Targeted to all education
level
Family size: Targeted to all family sizes

Geographic Klang, Selangor

Customers who are looking for high quality

Behavioral Segmentation and multifunctional table to provide
convenience in their daily life

25
4.4 ANALYZING MARKET TREND AND MARKET SIZE

Market Trend

For Gallen’s folding table, our company expect to operate in the long-time frames. This is
because we believe our product have their own quality and for sure will get a good response
from customer about our product. In Malaysia, the demand for Gallen’s folding table is
increasing from year to year. With various innovations of this folding table, it makes the
demand for this table increases. Besides, folding table is always being an attention for all
people to decoration that need a more space especially for students’ use. The market trend for
this Gallen’s folding table is limited.

Market Size

After considering so many potential marketplaces, Mango company decided to choose Klang,
Selangor state as market sagment. As we know Klang is popular place in Malaysia as a
business point of sale and become a buyer attraction for so many years. Klang, Selangor is
near with Kuala Lumpur and bordered by Melaka and Negeri Sembilan. There are so many
attractive place to shops with reasonable price in Klang. Therefore, we choose Klang state as
our market to operate the business.

The population of people stay and live in Klang, Selangor is 1,055,207 based on data
provided by department of statistic Malaysia. We estimate 35% of Klang people are the
customer of Gallen’s product. This is because, Gallen’s is one of Malaysian product that
come with variety of innovation and multifunctional. Therefore 35% from total population in
Melaka who are willing to buy our product is consider acceptable.

Below is the calculation for market size in value:

Total population in Selangor 1,055,207 people

(Klang)
Target market 35% (estimate existing product buyer) x
1,055,207
Market size 369,322 people
Product price per unit RM200

26
 Market size in RM 369,322 x RM200
(total market size of Gallen’s folding table =RM73,864,400
in Klang, Selangor)

Market Share

Market share before entering the market

(Mango Company)

Competitor Market share% Total Sales (RM)

Ikea 73 53,921,012
Kedai Bikin 9 6,647,796
Timeless Design 12 8,863,728
Others 6 4,431,864
Total 100 RM73,864,400

Market share after entering the market

(Mango Company)

Competitor Market share% Total Sales (RM)

Ikea 70 51,705,080
Kedai Bikin 9 6,647,796
Timeless Design 12 8,863,728
Others 5 3,693,220
Mango company 4 2,954,576
Total 100 RM73,864,400

27
4.5 ASSESSING COMPETITION

Competitors Product Price Place Promotion

Ikea -High quality Low to high Available Mass promotion

everywhere
-Strong
branding

Kedai Bikin -Moderate to -Moderate to Product is Local

high quality high available promotion
online and on
-Moderate store in Kuala
branding Lumpur

Timeless -Moderate -Moderate Product is Local

Design quality available promotion
online and on
-Moderate store in Kuala
branding Lumpur

Others -Low to Low Available in the Local

moderate area of the promotion
quality seller’s
residence
-Low branding

28
4.6 FORECASTING SALES

SALES PROJECTION SALES EVENTS

(RM)
JANUARY 180,000 Grand Opening
FEBRUARY 239,000 Chinese New year
MARCH 221,600 No events
APRIL 260,200 Ramadhan
MAC 250,200 Aidilfitri
JUNE 273,576 Mid-year sales
JULY 259,800 No events
AUGUST 285,500 National Day
SEPTEMBER 240,700 No events
OCTOBER 249,800 Halloween
NOVEMBER 263,500 Deepavali/Children’s Day
DECEMBER 230,700 Christmas
TOTAL YEAR 1 2,954,576
TOTAL YEAR 2 3,250,033.60 Estimated percent of sales increase in
(INCREASED 10%) (2,954,576 + 10%) year 2
TOTAL YEAR 3 3,900,040.32 Estimated percent of sales increase in
(INCREASED 20%) (3,250,033.60 + year 3
20%)

29
4.7 MARKETING STRATEGY

4.7.1 Product Strategy

For each client, our main goal is to provide a diverse selection of functional home
furnishing at an affordable price. At the beginning of our business, we would only sell
folding tables to maintain its quality. The tables we provide have three different variations
that are suitable for use as a kitchen table, study table and dining table. Since it can be folded,
this table can also save more space and is suitable for use in a narrow place.

4.7.2 Product Quality

Our goal is to ensure that the tables we produce are tables of the best quality in the market.
We are confident with our products because it will provide many benefits to society. The
quality of a product can be known by the type of goods it uses. To produce quality products,
we must also choose quality raw materials. Therefore, we had done our research carefully and
found a well-known manufacturer and provider in Selangor.

4.7.3 Pricing Strategies

Cost involved to produce one unit of GALLEN’S Folding Table

Material costs = RM 128

Labour costs = RM 100.00

Total Costs = RM 228.00

Selling price = Total cost + Mark-up % =

RM 228.00 + 88% = RM 200.64

The selling price is RM 200.64

for each product

Discount

The company's marketing team decided to use a discounting strategy that ranges from 20% to
88% off the product's initial selling price, depending on the season and the ratio of
suppliers/demands. This method is a great way to attract customers because the company can
offer the option of purchasing more items at a lower price.

30
Marketing Strategies

Direct Channel Location Country

Kiosk ● AEON Bandar Baru Klang Malaysia

Online Channel ● Shopee Malaysia,

● Instagram Singapore and
● Facebook Brunei

E-Marketing

Using Facebook and Instagram for social media marketing.

By far the most effective approach for assisting firms in growing and expanding in the
market is through social media marketing. Firstly, social media can help to market the
product because it might help to raise brand recognition. There is a statistic that shows that
Instagram has over one billion people using the app every month. Most of them spent almost
30 minutes on the app and 81% of the people use instagram to search products and services.
Instagram could help to promote the product because it has good engagement. Furthermore,
Instagram and Facebook are completely free to use. It is therefore cost-effective for the
company. Any company's first priority is to spend less and earn more. As a result, using the
free app to promote the brand and product is a wise decision.

Advertising

● Electronics and Digital

Currently, the most effective advertising is through the internet. The Internet has become a
place where every piece of information can be obtained immediately. This is similar to
advertising a product. Millions of social media users will see ads at the same time. Therefore,
advertising our products using platforms such as Instagram and Facebook is the best method
to allow our brand to be famous to users on the market.

31
 ● Sales Promotion

Promotional activities are incentives conducted or offered within a specified period of time to
influence purchases

Free delivery

Free delivery is one of the effective ways to attract customers to buy our product. Usually,
when a consumer buys anything online, the price will change when they choose for delivery.
When the product is more expensive, it could affect the buyer’s decision. By using the free
delivery option, consumers will be happier to buy our product.

Extended warranty

Extended warranties are insurance policies that cover the rest of a manufacturer's warranty.
Extended warranties provide warranty services such as product repair after the original
manufacturer's warranty has expired. By extending the warranty, it will influence the
consumer to choose the company's product over other competitors’ product.

Promotion cost

Promotion Activities Details Cost

Advertising Online advertising 3000

Sales Promotion Free Deliveries 2000

Total 5000

32
4.8 LIST OF MARKETING PERSONNEL
1) List number of marketing personnel required
Position Number of Personnel

Marketing Manager 1
Sales Personnel 1
Promoter Personnel 1
Total 3

2) Job description and job specification

Position Job description and specification

Marketing Job description:

Executives
● Develop critical thinking strategies that could satisfy customer and
company needs

● Adapting different implementations and initiating different products

and services strategies based on overseas and local marketing
techniques.

● Supervising and ensuring a smooth flow of subordinate employees.

Job specification:
● Degree in Marketing.

● Minimum of 3 years working in another company.

● Fluent in Malay and English.

Sales Job description:
Personnel

● Updating sales monthly achievement towards Marketing Executive.

● Ability to attract customers through different types of media use for

promotion.

33
 ● Aware of customers' reviews for future product improvement.

Job specification:
● Diploma in Business Management

● Fluent in Malay and English.

Promoter Job description:
Personnel
● Demonstrate and provide accurate product information for customers.

● Ability to initiate conservation.

● Ability to approach every customer.

.
Job specification:
● Min Sijil Pelajaran Malaysia.

● Fluent in Malay and English.

3) Schedule of Remuneration of Marketing Personnel

POSITION NO. MONTHLY EPF 12% SOCSO TOTAL

SALARY (RM) 2.5% (RM)
Marketing 1 2400 288 60 2748
Executives
Sales 1 1300 156 32.5 1488.50
Personnel
Total 4236.50

34
4.8 MARKETING BUDGET

ITEMS FIXED ASSET WORKING OTHER

(RM) CAPITAL (RM) EXPENSES (RM)
Fixed Assets
Signboard 1100
Working Capitals
Salary 4236.50
Promotion cost 5000

Other Expenses 5000

Grand opening

TOTAL (RM) 1100 9236.50 5000

E-MARKETING

Promotion using social media: Instagram & Facebook

35
5. OPERATIONAL PLAN

5.1 PROCESS PLANNING

Pick out tabletop boards.

Square edges of tabletop boards. Clean up the edges by using table saw.

Glue up table top together side by side then use pipe clamps to tighten the boards
together.

Trim top to size using circular saw and rip cut for the ends of the table to make it
perfectly even.

Carve slot for device like handphone and tab and cup holder using CNC Machine.

Sand tabletop smooth and flat using a belt sander to give it a good sanding especially
in those uneven areas to help get it nice and flat.

Fill cracks using stainable wood putty to fill any small gaps or cracks. Once the cracks
are filled, sand the top again using orbital sander to remove any excess glue and putty.

Apply finish with a coat of semi-gloss varnish for original color table and a cot of
enamel paint for color table.

Under the tabletop boards, insert Bluetooth electronic with midbass speaker on the
side of the table.

Assemble another piece of finished coated board under the Bluetooth electronic.

The gap between the two-pinewood board will be fill with ball bearing slide and
another two pieces of boards that can be pull from both sides.
36
5.2 OPERATION LAYOUT

The second part of the operation plan is to illustrate the layout of the product's operation.
Machines, equipment, employees, and other facilities used during the operation are all part of
the business layout.

5.2.1 Layout based on process

The Mango Company is a form of business that produces several products using similar
processes. This layout design is built on process similarity, including machines and
equipment that perform similar functions being grouped together.

Factory Main
Entrance

Circular Stationer
Table
Saw y
Saw
Belt Office
Machine
Disc
Sander

CNC Orbital
Machine Sander

Tool Room
Quality
Inspection
Area
Product Finished goods
Assembl storage
e Box
Packaging Lounge
Exit

37
5.3 PRODUCTION PLANNING

The table below shows how much output to be product in a day and in a month.
Figure is based on Mango Company sale forecast
Average sales forecast per month RM2,954,576 / 12
RM246,214.67
Price per unit RM200

Number of outputs per month RM246,214.67 / RM200

1,231 Units
Number of operation days per month 26 days

Number of outputs per day 1,231 / 26 days

47 units per day
Estimate % Safety stock per month 1,231 + 10% (estimate safety
stock)
1,354 units per month
Actual number of outputs per day + safety stock 1,354 / 26
52 units per day

38
5.4 MATERIAL PLANNING

Material used to produce one unit of Gallen folding table

Product No. Raw Material

101 Pinewood wood
102 Semi-gloss varnish
103 Folding shelf bracket
104 Ball bearing slides
105 Enamel paint
106 External speaker
107 USB cable

The Bills of Material for a unit of product

Product Raw Materials Total Quantity Price per Price (RM)

No. Required set/cm/ltr/pcs
(RM)
101 Pinewood 4 pcs/unit 14.23 56.92
102 Semi-gloss varnish 0.25 liter/unit 23 5.75
103 Folding shelf bracket 1 set/unit 8 8
104 Ball bearing slides 1 set/unit 8.48 8.48
105 Enamel paint 0.25 liter/unit 38 9.5
106 Midbass speaker 1 pcs/unit 30.05 30.05
107 USB cable type c 1 pcs/unit 8.00 8.00
108 Wood filler 0.05 liter/unit 6 0.60
109 PVA wood glue 0.05 liter/unit 6.90 0.69
TOTAL 127.99

39
 The Bills of Materials for a month

Product Raw Materials Total Quantity Price per Price (RM)

No. Required g/cm/ltr/pcs
(RM)
101 Pinewood 4 pcs/unit x 14.23 77,069.68
1354 = 5416
102 Semi-gloss varnish 0.25 liter/unit x 23 7,785.50
1354 = 338.50
103 Folding shelf bracket 1 set /unit x 8 10,832
1354 = 1354
104 Ball bearing slides 1 set /unit x 8.48 11,481.92
1354 =1354
105 Enamel paint 0.25 liter/unit x 38 12,863
1354 = 338.50
106 Midbass speaker 1 pcs/unit x 30.05 40,687.70
1354 = 1354
107 USB cable type c 1 pcs/unit x 8.00 10,832
1354 = 1354
108 Wood filler 0.05 liter/unit x 6 406.20
1354 = 67.70
109 PVA wood glue 0.05 liter/unit x 6.90 467.13
1354 = 67.70
TOTAL 172,425.13

Suppliers of raw materials

Product No. Raw Materials Supplier

101 Pinewood PalletXpert
102 Semi-gloss varnish Wision Wallpaint Sdn Bhd
103 Folding shelf bracket TeddyBee Store
104 Ball bearing slides Qubestorage
105 Enamel paint Wision Wallpaint Sdn Bhd
106 Midbass speaker Peter’s Store
107 USB cable type c Cytron Technologies Sdn Bhd
108 Wood filler LST Trading
109 PVA wood glue Soon Shing Hardware & Trading

40
5.5 MACHINE AND EQUIPMENT PLANNING

1)
Planned Rate of Production
No . of Machine Required= × Standard Production Time∨Unit
Machine Productive Time per day

52
No . of Machine Required= ×2 hours=15 Machines
7 hours

2) list of machine and equipment required

Item Price per unit Quantity Total cost (RM) Supplier
(RM)
Table saw 1388.00 1 1388.00 Sui Machinery
machine & Tools Sdn
Bhd
Stationery belt 367.00 1 367.00 Sui Machinery
disc sander & Tools Sdn
Bhd
Orbital sander 551.20 1 551.20 Sui Machinery
& Tools Sdn
Bhd
Circular saw 649.00 1 649.00 Sui Machinery
& Tools Sdn
Bhd
Cordless 158.00 1 158.00 Sui Machinery
screwdriver drill & Tools Sdn
Bhd
CNC machine 3999.00 1 3999.00 Tommy Tech

Pipe clamps 65.00 2 130.00 Spiro Spot

Trading
TOTAL 7242.20
MACHINE
AND
EQUIPMENT
Lorry for table 28,900.00 1 28,900.00 Red Zebra Auto
delivery Sdn Bhd
GRAND 36,142.20
TOTAL

41
5.6 MANPOWER PLANNING

1) Number of workers required

No. of
Worker = Planned rate of production per day X Worker Standard
Required Worker Productive Time per day Production Time/Unit

Planned rate of production per day

Items Explanation Figured is based on Mango

Company business
Planned rate of Production of outputs per 52 units
production per day day
Worker productive Effective working hours per 8 hours (effective working hour) –
time per day day after deducting one hour one hour (rest period & idling time)
rest period and idling time = 7 hours
Worker standard Estimate how much hour 1 folding table take 2 hours to
production time per needed for a worker to complete
unit produce one unit of product

52units per day

¿ ×2 hours
7 hours
= 15 workers required

2) List operational personnel under operation department

Position Number of personnel

Operation Supervisor 1
Factory operation workers 12
Lorry driver 2
Total 15

42
3. Job description and job specification

Position Job description and specification

Operation Supervisor Job description
 Maintains staff by recruiting,
selecting, orienting, and training
employees; developing personal
growth opportunities.
 Accomplishes manufacturing staff
results by communicating job
expectations; planning, monitoring,
and appraising job results; coaching,
counseling, and disciplining
employees for example initiating,
coordinating, and enforcing systems,
policies, and procedures.
 Maintains quality service by
establishing and enforcing
organization standards.
 Ensures operation of equipment by
calling for repairs; evaluating new
equipment and techniques

Job specification
 Degree in engineering or other
relevant area.
 Strong organizational and
leadership skills
 Have experience in using various
types of manufacturing
machinery and tools.
 2+ years' experience of working
on as Operation Supervisor or
other similar position

Factory operation worker Job description

 Review the specifications, sketches
or designs of the furniture to be built.
 Measure, cut, shape, weld, join or
assemble the different materials
following the established design.
 Ensure that their products are well
built and have sufficient strength for
the purpose for which they were

43
 designed.

Job specification
 Vocational school education.
 Have experience working in a
factory environment.
 Strong practical skills.
 Understand how to use machinery
properly and safely to prevent
accidents and ensure all tasks are
completed accurately.

Lorry driver Job description

 Responsible for the safe delivery of
goods.
 Organizing the most efficient route
from pickup point to drop off point.
 Organizing multiple drop-offs and
deliveries in each working day.

Job specification
 Minimum Sijil Pelajaran Malaysia.
 Have a valid driving license and
clean driving record.
 Practice safe driving habits.
 Able to follow verbal directions, read
maps and follow GPS.

4. Prepare Schedule of remuneration of operation personnel

44
 Schedule of remuneration of operation personnel
(Mango Company)
POSITION NO OF SALARY EPF SOCSO TOTAL
WORKER (RM) 12% 2.5% (RM)
(RM) (RM)
Operation 1 2100 252 52.50 2404.50
Supervisor
Factory 12 1500 180 37.50 1717.50
operation
workers
Lorry driver 2 1200 144 30 1374.00

Total 15 4800 576 120 5496

5.7 OVERHEAD REQUIREMENT

No. Items Cost / month (RM)

1. Maintenance of Machinery 2500

2. Insurance and Road Tax for Motor Vehicle 1300

3. Utilities 500

4. Rent 300

5.8 LOCATION PLAN

45
Our Main Store

Location

1. Far from the raw materials’ factory

2. Developing areas
3. Price of land is affordable
4. Transportation facilities available
5. Residential area

46
Our factory’s location

Location

5.9 BUSINESS AND OPERATION HOURS

1. Our main store operates 10 a.m. to 10 p.m. daily for the customer’s visit except
Sunday
2. The operation hours for the workers will be starts at 9 a.m. till 11 p.m.
3. Workers have their one-hour time extra to setup and clean-up the store before the
operation and after closing of the store.
4. Rest hour will be at 1 p.m. until 2 p.m. and 7 p.m. until 8 p.m.

47
5.10 LICENSE, PERMITS AND REGULATIONS REQUIRED

 License for signboard

 Permits for emigrant workers
 Wood processing plant permit (DENR)
 Yield License

5.11 OPERATIONS BUDGET

Particulars Fixed Assets Monthly Others Total

Expenses
Fixed Assets
Machinery and 7,242.20 7,242.20
Equipment

Lorry 28,900.00 28,900.00

Working Capital
Raw Materials & 172,425.13 172,425.13
Packaging
Salary, EPF & 5496 5496
SOCSO
Pre-Operation
and Other
Expenditure
Other
Expenditure 2500 2500

Deposit (Rent, 800 800

Utilities, etc)
Business
Registration and
License
1300 1300
Insurance & Road
tax for Motor
Vehicle
Other Pre-
Operation
Expenditure
TOTAL 218,663.33

48
6. FINANCIAL PLAN

ADMINISTRATIVE BUDGET
Monthly
Particulars F.Assets Exp. Others Total
     
Fixed Assets        

Land & Building -     -

Office Furniture & Fitting 7,490     7,490

  -     -

  -     -

  -     -
Working Capital        

Remuniration   7,444   7,444

Rent, Utilities   2,200   2,200

    -   -

    -   -

    -   -

    -   -

  -   -
Pre-Operations & Other Expenditure        

Other Expenditure     536  

Deposit (rent, utilities, etc.)     3,000 3,000

Business Registration & Licences     1,000 1,000

Insurance & Road Tax for Motor
Vehicle     - -

Other Pre-Operations Expenditure     - -

Total 7,490 9,644 4,536 21,134

49
 MARKETING BUDGET
Monthly
Particulars F.Assets Exp. Others Total
         
         
Fixed Assets        

Signboard 1,100     1,100

  -     -

  -     -

  -     -
Working Capital      

Salary 4,237   4,237

Promotion cost   5,000   5,000

    -   -

    -   -

    -   -

    -   -

    -   -
Pre-Operations & Other Expenditure      

Other Expenditure     5,000  

Deposit (rent, utilities, etc.)     - -

Business Registration & Licences     - -

Insurance & Road Tax for Motor
Vehicle     - -

Other Pre-Operations Expenditure     - -

Total 1,100 9,237 5,000 10,337

50
 OPERATIONS BUDGET
Monthly
Particulars F.Assets Exp. Others Total
         
         
Fixed Assets        

Machinery and Equipment 7242.2     7,242

Lorry 28900     28,900

        -

        -
Working Capital    

Raw Materials   172,425   172,425

Carriage Inward & Duty   -   -

Salaries, EPF & SOCSO   5,496   5,496

    -   -

    -   -

    -   -

  - -
Pre-Operations & Other Expenditure        

Other Expenditure     -  

Deposit (rent, utilities, etc.)     800 800

Business Registration & Licences     - -

Insurance & Road Tax for Motor
Vehicle     1,300 1,300

Other Pre-Operations Expenditure     2,500 2,500

Total 36,142 177,921 4,600 218,663

51
 Mango Company
DEPRECIATION SCHEDULES

Fixed Asset Office Furniture & Fitting

Cost (RM) 7,490  

Method Straight Line  

Economic Life (yrs) 5  

Annual Accumulated
Year Depreciation Depreciation Book Value

  - - 7,490

1 1,498 1,498 5,992

2,99 4,
2 1,498 6 494
4,49 2,
3 1,498 4 996
5,99 1,
4 1,498 2 498
7,49
5 1,498 0 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

Fixed Asset Signboard

Cost (RM) 1,100  
Method Straight Line  
Economic Life (yrs) 5  
Annual Accumulated
Year Depreciation Depreciation Book Value

  - - 1,100

1 220 220 880

22
2 0 440 660
22
3 0 660 440
22
4 0 880 220
22 1,
5 0 100 -

6 0 0 -
7 0 0

52
 -

8 0 0 -

9 0 0 -

10 0 0 -
Fixed Asset Machinery and Equipment
Cost (RM) 7,242  
Method Straight Line  
Economic Life
(yrs) 5  
Annual Accumulated
Yea
r Depreciation Depreciation Book Value

  - - 7,242

1 1,448 1,448 5,794

1,44 2, 4,
2 8 897 345
1,44 4, 2,
3 8 345 897
1,44 5, 1,
4 8 794 448
1,44 7,
5 8 242 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

Mango Company
LOAN & HIRE-PURCHASE AMMORTISATION SCHEDULES

LOAN REPAYMENT SCHEDULE HIRE-PURCHASE REPAYMENT SCHEDULE

Amount 160,095     Amount 21,142    
Interest Rate 5%     Interest Rate 5%    
Duration (yrs) 5     Duration (yrs) 5    
Method Kadar tetap          
Yea Yea
r Principal Interest Total Payment Principal Balance r Principal Interest Total Payment Principal Balance
160,09
  - -   5   - -   21,142
8,00 128,07
1 32,019 5 40,024 6 1 4,228 1,057 5,286 16,914
8,00 96,05
2 32,019 5 40,024 7 2 4,228 1,057 5,286 12,685
8,00 64,03 4,22 1,05
3 32,019 5 40,024 8 3 8 7 5,286 8,457
32,01 8,00 32,01 4,22 1,05
4 9 5 40,024 9 4 8 7 5,286 4,228
32,01 8,00 4,22 1,05
5 9 5 40,024 - 5 8 7 5,286 -
6 0 0 - 6 0 0 -

53
 9
8
7

10
0
0
0
0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company

 
FLOW STATEMENT

 
7 8 9 10 11 12 TOTAL YR 1 YEAR 2 YEAR 3

100,000
160,095

0
0
0
0

,576 259,800 285,500 240,700 249,800 263,500 230,700 2,954,576 3,250,034 3,900,040

Raw Materials

(Operations)
-
-
-
-
-

Ending Stock
Opening Stock
,576 259,800 285,500 240,700 249,800 263,500 230,700 3,214,671 3,250,034 3,900,040

Factory Overhead
Carriage Inward
Raw Materials Used

Salaries, EPF & SOCSO

,444 7,444 7,444 7,444 7,444 7,444 7,444 89,328 98,261 117,913

Current Year Purchases

,200 2,200 2,200 2,200 2,200 2,200 2,200 26,400 29,040 34,848

Depreciation of Fixed assets

 
 
,237 4,237 4,237 4,237 4,237 4,237 4,237 50,838 55,922 67,106
,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000 66,000 79,200
-
-
-

Year 1

54
,425 172,425 172,425 172,425 172,425 172,425 172,425 1,896,676 2,069,102 2,276,012
9
8
7

10

,496 5,496 5,496 5,496 5,496 5,496 5,496 65,952 72,547 87,057

7,228
65,952
1,206,976
1,206,976
862,126
2,069,102

 
 
 
 
 
0
Mango Company
0
0
0
0

5,536 6,090 7,308

3,800
1,000
1,300 1,300 1,300

Year 2
2,500

PRO-FORMA PRODUCTION COST STATEMENT

0
0
0
0

8,590
15,000

7,228
72,547
2,620,862
2,620,862
517,275
2,276,012
862,126
352 352 352 352 352 352 352 4,228 4,228 4,228

 
 
88 88 88 88 88 88 88 1,057 1,057 1,057
-
-
-
-
-

,668 2,668 2,668 2,668 2,668 2,668 2,668 32,019 32,019 32,019
667 667 667 667 667 667 667 8,005 8,005 8,005
0 0 0 0
,577 200,577 200,577 200,577 200,577 200,577 200,577 2,272,230 2,443,570 2,716,053
,999 59,223 84,923 40,123 49,223 62,923 30,123 942,441 806,463 1,183,988

Year 3
,907 615,905 675,128 760,051 800,173 849,396 912,318 942,441 1,748,904
,905 675,128 760,051 800,173 849,396 912,318 942,441 942,441 1,748,904 2,932,892

7,228
87,057
2,903,640
2,903,640
344,850
2,731,215
517,275

 
 
 
 
 
-
-
-
-
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
M

 
PRO FORMA
MONTH Pre-Operations 1 2 3 4 5

Sales

Goods
Goods
 
CASH INFLOW
Capital (Cash) 100,000
Loan 160,095

Gross Profit
Cash Sales 180,000 239,000 221,600 260,200 250,200

Production Cost
Collection of Accounts Receivable

 
Production Cost

TOTAL CASH INFLOW 260,095 180,000 239,000 221,600 260,200 250,200

Less: Enpenditure
Less: Cost of Sales
CASH OUTFLOW
Adm inistrative Expenditure

 
Remuniration 7,444 7,444 7,444 7,444 7,444

Opening Stock of Finished

Administrative Expenditure
  Total Factory Overhead

Rent, Utilities 2,200 2,200 2,200 2,200 2,200

Less: Ending Stock of Finished

Marketing Expenditure
Salary 4,237 4,237 4,237 4,237 4,237
Promotion cost 5,000 5,000 5,000 5,000 5,000

Year 1
Operations Expenditure

55
Cash Purchase
Payment of Account Payable 172,425 172,425 172,425 172,425

 
 
 
 

115,728
2,413,064
541,512
738,644
1,280,156
2,954,576
Carriage Inw ard & Duty
Salaries, EPF & SOCSO 5,496 5,496 5,496 5,496 5,496
1,280,156
7,228
 

Mango Company
Other Expenditure 5,536
Pre-Operations
Deposit (rent, utilities, etc.) 3,800
Business Registration & Licences 1,000

PRO-FORMA INCOME STATEMENT

Insurance & Road Tax for Motor Vehicle 1,300

Year 2
Other Pre-Operations Expenditure 2,500
Fixed Assets
Purchase of Fixed Assets - Land & Building
Purchase of Fixed Assets - Others 8,590

 
 
 

127,301
303,181
2,946,853
492,429
2,700,638
738,644
3,250,034
Hire-Purchase Dow n Payment 15,000
 

2,700,638
7,228

Hire-Purchase Repaym ent:

Principal 352 352 352 352 352
Interest 88 88 88 88 88
Loan Repaym ent:
Principal 2,668 2,668 2,668 2,668 2,668
Interest 667 667 667 667 667
Tax Payable
TOTAL CASH OUTFLOW 32,190 33,688 200,577 200,577 200,577 200,577
CASH SURPLUS (DEFICIT) 227,905 146,312 38,423 21,023 59,623 49,623

Year 3
BEGINNING CASH BALANCE 227,905 374,216 412,639 433,662 493,284
ENDING CASH BALANCE 227,905 374,216 412,639 433,662 493,284 542,907

152,761
705,144
3,194,897
295,458
2,997,925
492,429
3,900,040
2,997,925
7,228

 
 
 
 

0
  Marketing Expenditure 110,838 121,922 146,306
  Other Expenditure 5,536 6,090 7,308
Business Registration &
1,000    
  Licences
Insurance & Road Tax for
1,300 1,300 1,300
  Motor Vehicle
Other Pre-Operations
2,500    
  Expenditure
  Interest on Hire-Purchase 1,057 1,057 1,057
  Interest on Loan 8,005 8,005 8,005
  Depreciation of Fixed Assets 1,718 1,718 1,718
 
  Total Expenditure 247,682 267,392 318,454
  Net Profit Before Tax 2,165,382 35,789 386,689
  Tax   0 0 0
  Net Profit After Tax 2,165,382 35,789 386,689
  Accumulated Net Profit 2,165,382 2,201,171 2,587,860

Mango Company
PRO-FORMA BALANCE SHEET
        Year 1 Year 2 Year 3
  ASSETS      
       
Non-Current Assets (Book
     
Value)  
  Land & Building      
  Office Furniture & Fitting 5,992 4,494 2,996
       
       
       
  Signboard 880 660 440
       
       
       
  Machinery and Equipment 5,794 4,345 2,897
  Lorry 23,120 17,340 11,560

56
       
       
  Other Assets      
  Deposit 3,800 3,800 3,800
       
  39,586 30,639 21,693
  Current Assets      
  Stock of Raw Materials 862,126 517,275 344,850
  Stock of Finished Goods 738,644 492,429 295,458
  Accounts Receivable      
  Cash Balance 942,441 1,748,904 2,932,892
  2,543,211 2,758,609 3,573,200
       
  TOTAL ASSETS 2,586,596 2,793,048 3,598,693
       
  Owners' Equity      
  Capital 100,000 100,000 100,000
  Accumulated Profit 2,165,382 2,201,171 2,587,860
  2,265,382 2,301,171 2,687,860
  Long-Term Liabilities      
  Loan Balance 128,076 96,057 64,038
  Hire-Purchase Balance 16,914 12,685 8,457
  144,989 108,742 72,495
  Current Liabilities      
  Accounts Payable 172,425 379,336 834,538
       
  TOTAL EQUITY & LIABILITIES 2,582,796 2,789,248 3,594,893

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Based on the graph above, Mango company has achieved a positive inventory turnover ratio
from the first year to the third year. In the first year the company’s inventory turnover ratio
did not occur. The second year, the company’s inventory turnover ratio occurs twice and in
the third year, the inventory turnover ratio occurs four times. This shows that the Mango
company has the ability to convert inventory into sales and also shows that the company has
good inventory liquidity

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 REFERENCES

Sufian, S. A., Nordin, N. A., Tauji, S. S. N. & Nasir, M. K. M. (2020). The Impact of Covid-

19 on the Malaysian Education System. International Journal of Academic Research

in Progressive Education & Development.

Nerea Boada (2021). Examples of Marketing Objectives.

https://www.cyberclick.net/numericalblogen/marketing-objectives-definition-10-
examples. (17 March 2021).

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